How agentic payments present risk

AI agents are starting to handle payments without human intervention, but the legal safety net isn't ready yet. For retailers and lenders, this technology—known as agentic payments—promises a future where AI bots handle subscriptions, bill pay, and even individual purchases for customers. However, the core risk lies in liability. If an AI tool spends more than it was authorized to or falls victim to a digital 'hallucination' that results in a bad transaction, the legal system currently lacks a clear rule on who pays for the mistake. For your business, this means a potential surge in complicated chargebacks and payment disputes. Issuers are hesitant to open up credit credentials to these bots because they don't want to be on the hook for automated errors. While the technology could significantly reduce friction in the buying process, it introduces a new layer of 'authorized user' risk. If a customer claims their AI bot went rogue and made an unauthorized purchase at your store, the path to resolution is currently murky. Retailers should stay informed on how major networks like Visa and Mastercard are updating their terms of service to account for these autonomous transactions.

Source: Payments Dive

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